Google’s parent company, Alphabet, has agreed to acquire cybersecurity startup Wiz for $32 billion in cash, according to a report by the Financial Times on Tuesday.
The acquisition marks Alphabet’s largest purchase to date and is expected to strengthen its position in the cloud security market.
Wiz, a five-year-old cybersecurity company, specializes in cloud security solutions that work across multiple cloud platforms. This cloud-agnostic approach has contributed to its rapid growth and increasing adoption by businesses looking to protect their cloud applications.
The acquisition aligns with Google Cloud’s broader strategy to expand its cybersecurity capabilities and compete with industry leaders like Amazon Web Services (AWS) and Microsoft Azure. Google CEO Sundar Pichai highlighted the importance of the deal, stating:
“Together, Google Cloud and Wiz will enhance cloud security and enable businesses to operate across multiple cloud environments.”
The acquisition is expected to undergo regulatory scrutiny, as it comes amid ongoing antitrust challenges facing Alphabet. The US Department of Justice has previously filed lawsuits against Google over its search and advertising businesses, and this deal could serve as an early test for the Trump administration’s approach to Big Tech mergers.
Wiz has raised $1.8 billion in venture capital funding and was valued at $12 billion earlier in 2024. Alphabet had previously engaged in acquisition talks with Wiz last year, reportedly offering $23 billion, but the deal did not materialize at the time.
Wiz’s rapid revenue growth and increasing presence in the cybersecurity space have made it an attractive target. The company reported $350 million in recurring revenue last year and aims to reach $1 billion by 2025.
The deal builds on Google Cloud’s previous acquisitions in the cybersecurity space, including the $5.4 billion purchase of Mandiant in 2022. The move could help Google compete with Microsoft, which has a significant presence in cybersecurity and generates over $20 billion in annual revenue from security-related products.
While the acquisition could enhance Google Cloud’s offerings, one key question remains: Will Wiz continue to provide cloud-agnostic security solutions, or will it shift focus toward Google Cloud?
Reuters, Axios, and the New York Times contributed to this report.
